Resurgent tourism within Asia is helping to drive economic recoveries and demonstrating the growing power of regional consumers.
Unlike in the US and Europe, where unemployment remains high and consumers are cautious, Asia’s unemployment rates are falling. That has given Asians the confidence to travel, some for the first time.
Tourism generally accounts for a relatively small share of economic output. But it signals an important willingness among consumers to spend.
Consumption spending more broadly has been driving growth across Asia. Government stimulus spending and subsidies for consumers to buy big-ticket items such as cars and appliances have helped economies expand at healthy rates. Chinese consumers bought more cars than Americans last year, for instance.
(Source: The Wall Street Journal Online)